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tv   Squawk Box  CNBC  November 8, 2019 6:00am-9:00am EST

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>> good morning. welcome to "squawk box" becky is off today. the dow looks like it will open about 29 points higher s&p up marginally. nasdaq off about 4.5 points. watching the 10-year the biggest jump since the 2016 election we'll be talking about elections coming up. top corporate earnings shares up sharply for disney reporting earnings
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speaking exclusively with cnbc yesterday. disney ceo bob iger says the service is ready to go. >> well it is ready to go. we tested it in netherlands. it was quite successful. the product did not have original content it was very well received. the user reaction. very, very navigatable, easy to use, elegant, great access to our brands and story telling >> disney said protests in hong kong took a toll on theme park there. 5% on top of what we've seen so far this year. >> people are more excited about the promise of disney plus than about the issues taking place on
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the other end. the hong kong thing was probably built into the stock >> i think that was expected but this willingness to have faith in disney even though we won't know the strength. >> he decided that's the horse he's going to ride you saw the profit half order was last year. >> this is a story stock now >> yes right. >> it went up. i was looking at it. i guess i might look at something. i might stream something from them i'd be more excited about new movies andcontent.
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>> my son is excited you have seen toy story 4 yet? >> i have not. that would be a good reason. >> and lion king >> don't they have three streaming services >> hulu and espn plus. >> they are all quite different. >> we haven't talked about what is happening with hulu and fox and what that will mean to this. >> there is an interesting valuation question you ask should they have something close tore a netflix and does this compute on a player like comcast that can create those in terms of the videos >> that model. that core business we'll see. maybe he's riding at the streaming horse, we'll see if
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that becomes the profit driver it worked for netflix. >> it is a different beast >> different time. >> getting dvds in the mail. let's talk about the election a report that michael bloomberg, former mayor of new york is entering the primary he would need to file in alabama today to get on the ballot sources telling nbc he hasn't decided whether he's going to run but he's filing to keep those options open he believes president trump represents an unprecedented threat to our nation and is concerned that he feels the current field of democrats is not in a position to beat him in 2020 after the news, a reporter
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caught up with senator warren and here is what she has to say. >> what if michael bloomberg says i'm going to run? >> that's up to michael bloomberg. we ought to be building a grassroots movement to make real change in this country i don't think democracy should be about coming in and buying elections. >> is this pointed at michael bloomberg? >> pointed at everybody who thinks the government is run by how they think they are running things it is working great for those at the top and for the corporate executives and the giant multinational corporations not for much of anybody else when you've got a government
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working great for those at the top and not for anybody else, that's corruption. we got a chance in 2020 to turn that around. we got a chance to say we are going to build this one from the ground up. we are going to build a movement we are going to say to all the billionaires, you get a vote but only one vote. there is a lot more of us than them >> the question of whether the party has moved. >> the rest of what she said is a crock of shitchzu.
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let's make a bet right now i'll give you odds he doesn't eventually run it will be howard schultz 2.0. him getting the nomination is a pipe dream >> trial balloon and pipe dream. clearly he thinks joe biden -- >> he thinks he thinks. 75% of democrats are satisfied >> 85% according to wall street journal. >> he comes along, mr. $54 billion from new york city and says, these guys stink it's so bad. so presumption uous and argue
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owe gant >> can i ask you a question? to me, i look at mayor bloomberg, i look on the merits of what he did to new york city, as a business person what he did as close as an independent as ever. >> he was an independent at one point. >> he was a republican at one point. >> he just became a democrat last year. >> why would you be dismissive of him >> i do not have a horse in this i don't care whatever you want to do with the democratics. >> it is fought whnot what i wa. >> whatever the democrats want to do. >> let's play it out what does that do in terms of
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politicki politicking -- splitting the vote >> obviously he takes from biden. he takes from buttigieg on day one. >> it lessens warren's chances >> within the party, that's the complicated party. it is the difference between the primary and the national election are there a lot of disenfranchised democrats who think warren is too left are there people who wouldn't come out to vote at all because of it or dare i say might even vote for trump i think there are. that's what he's looking at. whether there is enough people, i don't know >> you look at predicted 2% to 6% or 7% just on the
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nomination the entire story we've been talking about is the billionaire bashing. it is almost like he comes riding to the rescue of the other billionaires that's not going to play in the a.o.c. day. >> that will get played terribly and used against him >> and will be the trial balloon where he's going to go wow, all my friends in new york city told me this is a good idea do you like the idea that the first state -- alabama >> i know you are calling it a trial balloon. by default, he has to do it. >> it is a led balloon >> andrew, i just think it is going to be howard schultz 2.0
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he's attractive to a lot of people not everybody in the country knows what he did in new york city he's got a lot of work cut out for him. >> who is advising him he's probably well intentioned it is a bad commentary on the process. we've been through all of these debates and people and build gs up support he comes in and says you all suck so bad, so incapable that i need with my money to come help you >> you are saying that is the narrative being built. it is being built on the republican side as well too. >> i feel bad. i didn't want to weigh in on any of this. there is hope here for you people would love bloomberg to
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be the perfect president i just don't think it can happen >> we'll see he talks climate change and walks around with a lot of armed guard. >> you have no doing in this hunt >> i do have three dogs at home. we are dealing with the dogs and wall paper can you imagine. >> we are waiting for you. >> okay. a quick update on the china trade war, yesterday, we reported china's commerce ministry said it struck a deal with the u.s. to roll back tariffs. by reuters is reporting that the move faces fierce internal option from the white house.
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cats, trying to wrangle them together usually our hopes are dashed by china sayingsomething. >> yesterday, they were really talkative. they were speaking at length and the latest about the concept that china and the u.s. would be phasing out tariffs. that conflict forming in the white house. it looks as though they are conflicted about whether or not phasing out tariffs is on the negotiating table and whether
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the u.s. should do it if it is larry kudlow confirmed that tariffs and the phase out would be part of the discussions when he said tariff agreements and concessions would be included if there is a phase one deal. that seems to contradict the statement of navarro he has been concern that if the tariffs are lifted, that could mean the u.s. loses leverage the chinese have been consistent they've all said the phase out of tariffs is and has been a part of the discussion and is a key condition for a successful trade deal >> thank you futures are still up thank you. check back in. let's talk about the big move
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later after we come back in treasury yields. it was like 1.80 to 1.90 >> it went to 1.97 yesterday and today. >> back in 1987 when the market crashed, i think i was long but they went up 200 basis points in one day. they want from 820 so 0 it is big. plus a bovine relocation the bull is getting a new home are they moving the bill girl too saying stop to the bull. >> details coming up next on "squawk box. flus ♪
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8. >> the bull sculpture with plans to move closer to the stock exchange the statue is a frequent site for protests i've spent quite some time around that. >> they just walk into the street to take a picture >> right around the exchange, there are no cars anymore, so
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you can pull this off. >> if you are truly woke, we probably ought to melt that thing down >> but the carbon foot print would be large >> you would prefer to have a bear out there >> i wouldn't want to give anymore publicity to capitalism. it takes a village type global statement there. >> wouldn't you? >> support capitalism, my friend top with this. free markets free market capitalism >> i'm yanking his chain and he's yanking my chain back >> what other system in the world has taken people out of
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poverty. >> he's trying to get you to say those things >> because it is true. >> don't you think that symbol sanders supporters don't like that symbol. >> they don't like capitalism. >> what is it made out of? it could be better used if we melted it down >> what's going on joining us now, portfolio manager of growth fund, i've been talking about this in the last couple of days, as the market hits new highs, multiples have been getting uncomfortable. we are hitting newhighs.
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at the end of the year, we could have a santa clause rally. >> is this what we are doing right now? >> it is the beginning of window dressing >> you know what they were cutting down yesterday, you saw it >> the tree. >> the tree is on its way to rockefeller center >> you with me >> i'm still thinking about the golden calf outside of the exchange >> you are right worshipping a golden calf. how did that go? not very well. anyway the santa clause rally, we are
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in the mist of >> i think so. the question of looking into 2020 to me is looking to places where there are bargains midand small caps are trading at 20% off. you are starting to see some signs of life there. >> you are cautionly optimistic? >> particularly if there is resolution on the trade front. >> you are more of a bottoms up guy? how is the environment for your universe >> we've been having a great year so far. we are taking some money off the table in the winners hitting these 52 week highs. some of them have just gone vertical and looking to redeploy and
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looking at those 52 week lows or close to that and where is the value. small caps are seeing money come in but you continue to see this growth into value rotation you are seeing the recent ipos being sold we did come through tax law selling. now the hedges and other personal investors will be evaluating >> do either of you athink ther is a point that the ten-year stop thinking it is good news that it is going up? >> i think we are aways away from it being bad news >> like 3% maybe even 3.5 historically, you don't have a head wind until you have much higher interest rates. come down well lower with basis
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points we could go up another 50 to 75 bips >> no one is talking about recession. the whole discussion of this r word is gone three or four weeks ago. it really is being viewed that will is growth we can look to a good election year people want to get reelected across the board growth can come in from bad comps, easy comps. >> if you were to feed this into a computer 3.5% unemployment, inflation and interest rates at 2%, they would say wow. that must be a good stock market there are reasons, right >> we've been dumping so much into the central banks, that
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might be something they would point out. >> i would love to see capital spending come back i think we'll see that as they transition out of china and determine where can they operate longer term. i think will is continuing >> thank you how do you like your new set you like it? >> in the round. you feeling it >> who is going to say they don't like it? >> but the round is good weigh all see each other >> i can't believe they put us like this. >> frick and frak. >> it is a big world with lots of varying >> i'm glad you've come together >> we accept there are people
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>> good friday morning to you. take a look at u.s. equity futures. do you looks like it will open higher s&p a little over one point. nasdaq looking to open largely down, close to about 3.5 points. shares of gap tumbling after the ceo announces he is stepping down he has served as ceo since 2015 and worked at gap for 15 years the company's nonexecutive chairman will serve as interim ceo. the company also slashed its full year earnings out look. look at that stock it is going to be off almost 10%. >> they announced in february, they were going to split the gap
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brand. >> when is the last time you were at a gap? >> when is the last time i've been anywhere? >> i only go to gap because it is 40% off >> i mean they dress us here i have to go meet people at places fancy schmancy you are the biggest clothes horse in here. you notice the lapels.
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>> i love clothes. i'm happy to admit >>i love my lulu lemon pants they are stretchy and have a zipper where i put my wallet zillow reporting a third quarter revenue lift home flipping business expected to generate $1.25 billion this year coming up, former new york city mayor michael bloomberg may be entering the 2020 presidential race disney shares oping on a strong earnings report ahead of the streaming launch of disney more coming up
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>> covering the bases. senior fellow and aei's economic policy analysts. both are cnbc contributors things in principal is cool and he's done a lot in new york. has mainstream appeal here but once it happens and you start looking at the details, i'm not
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sure it flies. jared, you were joe biden's economist. i don't think it is very nice of bloomberg to basically say biden isn't going to do. i can't imagine you are positive about this >> no. i feel much the way you do he has flittrted with the presidency maybe the last 10 years. nice or not, just based on the strategic whole thing. if you are worried about a moderate seeing a path through and maybe beating trump, he gets in and takes votes away. i don't get the logic. i think he's reading the room pretty badly with just another
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billionaire in the race. even with his experience, it doesn't make sense to me >> elizabeth warren has resonated not with the entire party but where all the energy is, the answer to that is another billionaire? she keeps talking about how billionaires can't be influencing the political process, so you put a billionaire in to run? >> she sent out a tweet saying welcome to the race and here is my billionaire's tax you might want to look at it >> it would be different as an independent. i keep thinking of an independent like howard schultz. i don't know how the primary thing will work out. maybe it is.
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>> why is he running here is my big league political analysis, he would like to be president of the united states and you have to be in it to win it and this is maybe his last chance to maybe give it a slhot. spend a hundred million and see where you end up at the end. the only other reason is that he wants to tell democratic voters, please don't eat the rich. elizabeth warren wants to eat the rich that would be bad. >> you think it plays to mayor pete >> i think it would take away. >> if what jimmy says is true, it is not about eating the rich. isn't he older than joe biden.
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>> 77 years old. >> he's 77 right now >> he's in the sweet spot between biden and sanders. >> he's trying to move the party closer to center, do you think he can do that through the primary. it is not going to be him though his name recognition outside of new york city. >> he does have a name recognition problem outside of boston to washington here is the thing about that this is a technical thing we probably know. if he's so funny, he probably doesn't get into the debates the rules are that you have to have enough people donating to get on to the debate page. obviously he can fund himself all day long but he doesn't end
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up on the debate stage, so i just don't see the path for him. >> why don't he spend like $100 million or $500 million for amy klobuchar or cory booker that seems logical >> yes he doesn't need to get in the race to make the point there are moderates already making that point. i basically feel, most democrats feel like we have a pretty decent field we have enough candidates right now. >> that is the point i made, to come in and sort of blankety blank all over the candidates that have been through the debates and pounding the streets. >> i don't think he's reading the room >> no. someone is giving him bad
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advise >> or he thinks he can change the room you run for president to make an argument he thinks he has the char asthma and smarts >> but people are satisfied with the candidates including 31% which were very satisfied. he's trying to offer something that nobody maybe wants. >> nobody new they needed the iphone until they got it >> maybe he's the iphone >> on gun coantrol, economic rights he has a track record. i'm not attacking mike bloomberg. >> you are saying he's late. >> a 77-year-old billionaire
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getting in at this point makes no sense and is counterproductive. >> you got mayor pete, i got mayor mike >> i ought to hire you, jimmy p. i'm in desperate need of funds, so i'm open to all possibilities. >> gentlemen, thanks certainly giving us something to talk about on this friday. >> it is >> i don't know what to make of it. >> do you see jared and i finishing each other's sentences. >> bizarre world. >> we like people with business experience and political experience. >> they keep replaying his speech from 2016 about the market crashing and all these horrific things that would
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happen it didn't age well. >> he doesn't have a dog in this hunt >> when we return, disney shares are soaring. we'll break down the strong quarter for the company and the impact the new streaming service is having when it launches next week >> announcer: don't forget to subscribe to our podcast you'll get interviews, original content and behind the scenes consent. look for us and subscribe to squawk pod today
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welcome back to "squawk box" this morning disney reporting strong results. joining us is jessica, the senior u.s. media entertainment analyst at bank of america and merrill lynch. one of the greatest analysts of all time. >> thank you. >> it's true. >> what do we think about this is this a story stock at this
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point? >> it's all about streaming. >> that's a story stock because it's all based -- we're now betting on the future. >> well, it will be a hybrid valuation. there's disney's basic business which is genuinely really strong with amazing brands, incredible i.p., great consumer products and then there are the three streaming services and one of the surprises in the earnings last night was how much disney grew espn plus hulu grew 500,000. so the existing services are doing well it's all about disney plus how do you do the math for those analysts and investors who are trying to figure out what the comps are going to be and how they're going to project it. >> we look at underlying fundamental earnings excluding the direct to consumer losses. disney's always traded at a premium and they deserve it. 20 to 30% to the market. something like that. then we've done a bull/bear
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scenario we've put in some -- we assume that there is some cannibal lieization in the 60 to 90,000, we have arranged for 11 based on the 11 million. netflix. streaming to market. disney directly is conservative. >> do you believe that disney is going to ultimately be picking off business from netflix. >> i'm speaking of it. and that all of us somehow manage it. efr three, four, five seven.
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>> there are two, three, or four i'd like it to the incumbents have an issue. >> incumbents being? >> when you have a new entrant. >> do you think it's a compression -- this is the big question is netflix going to have to come down and everybody else come up? is there a meeting in the middle in terms of valuation? >> the growth will go to services and disney has the biggest scale of what comcast is doing with peacock it's an advertising supported service. why wouldn't you take it then you have discovery with the incredible like niche services that food network kitchen is
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impressive and the ancillary revenue whether it's ecommerce, kitchen appliances, whatever they do. it's really interesting. that's kind of another type of service. >> so the 160 price target, how much of that 168 is the dtc domestic and international and what sort of valuation do you place on that if one thinks that netflix's valuation should come down and disney should go up >> we've done a bull/bear. our down side is close to 120. our up side is $200. 168 -- >> oh, wow. >> a lot of it will depend on the performance of disney plus we have a range for the three services we just discussed just disney plus alone, which will be the bigger driver? that's where the volatility is. >> that part of the business presumably is riskier part of the business because of the spend required in order to get to that up to 90 million by fiscal 2020. >> we've done it in our
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valuation. we've given them a haircut which if they succeed would be the opposite it wouldn't be a discount, it would be a premium because there's going to be huge growth. >> so if i handed you $10,000 right now to buy any of the stocks in your world, what would you buy? >> we love obviously disney at this moment in time and comcast. >> comcast, parent company of this net work mentioned. >> your parent company comcast assets are very similar to disney and the stock has not traded in line. >> why is it trading at such a discount. >> it's a mystery to us. it's incredibly well managed both on the cable side and on the nbc-u side steve burk has done a fantastic job. brian roberts has positioned comcast so well with the products -- the array of products and particularly broadband so it's -- i can't answer that question
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>> go on go on. thank you for being here. >> thank you. >> she's got an invitation back. >> we're going to take a commercial and we're going to come back and just focus on comcast. i'm kidding. >> thank you appreciate t. it's great to see you. >> thank you so much for having me. election bombshell we'll show you what democrats are saying about the potential entry of michael bloomberg and the surging yields and stocks and we'll talk strategy and how to position your portfolio next. servicenow put our workflows in the cloud.
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revenge under billionaires as wealth comes under attack record run green arrows to end the week as the major averages sit at all-time highs. plus, the house of mouse disney shares rising this morning after earnings beat the street the second hour of "squawk box" begins right now. good morning welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with joe kernen and melissa lee. becky is off today take a quick look at u.s. equity futures this hour. want to show you where we stand. about 2 1/2 hours before the market would open up dow looks like it would open up
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about 27 points higher we're going to call it s&p 500 almost nicely -- better to be green than red but not really moving anywhere. the nasdaq looking to open 6.5 points dow component walt disney is higher in pre-market trading disney beat estimates on the top and bottom line. the numbers come a few days before the highly anticipated launch of the disney plus service. we'll have much more on disney in a few moments. gap ceo art peck has stepped down it follows several years of sluggish sales the company is warning that the weak salestrend is continuing this quarter he will be replaced on an interim basis by robert fischer, son of the company's founders. that stock is down almost 8%. sears is closing down 96 more sears and k-mart retail locations. that will leave just 182 stores in operation compared to nearly 2,000 just five years ago. joining us now to talk more about investing strategy with markets in record territory, david bianco, mike santoli is
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also here. what's your title, chief market commentator. >> senior markets -- >> chief markets senior markets i gave you a promotion. >> i think he should have that. >> i think he should be chief. >> i do, too. >> since there's so many. >> chief is good. >> the top, right? editor in chief. >> too much accountability attached to it. >> you want to be senior >> add global. global chief commentator david, i'll start off with you what we've seen is such a risk off movement in the markets. i mean, gold and silver on pace for the biggest weekly decline for the year we've got the ten year yield touching 197 yesterday we have yields around the world going higher is that a clear signal to you that where we are in this rally is pretty stable >> it's a clear sign that people feel a lot better about the global economy, the u.s. economy. i myself am feeling better, too.
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i was starting to get quite alarmed during the summer and in the summer, late summer i was positioning myself for a correction to occur in the autumn i was wrong about that market rather than going 5% below where it was, it's 5% above. i look back and think to myself, what happened? well, clearly the administration doesn't want to raise tariffs. we'll see if they lower them i think they'll introduce a framework for lowering them. i think the fed has gotten themselves to the right interest rate and the right messaging on their policy and, look, we've seen data that shows the economy's been resilient, particularly the service side of the economy. when i look at earnings season, i was actually more encouraged out of the results that came out of technology and health care and there's still a lot of challenges of energy, industrials, retailers so what i am happy to say, more constructive we've taken our defensive total away but we're maintaining our tilt towards growth stocks
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i'm having a hard time seeing -- even though there's been a rally in beta, cyclicals and value stocks, i think the legs sit at the growth stocks in the united states. >> mike, if you did the ben franklin close and put the positive things here and list all the negative things here -- >> right. >> -- do you remember the misery index back in the -- >> sure. >> okay. you add up interest rates and inflation. >> unemployment and inflation. >> unemployment and inflation. it's like -- it was like 25. it's like 4 or some ridiculous number, and then you look at consumer confidence or even valuations or -- >> sure. >> just if you were to plug all of those things in and give it to an objective observer that didn't know who the president was, what year it was, anything else, they would say, wow, these look like really positive data points for -- >> right you would say it makes all the sense in the world for the market to be at a record high. >> to worry about it. >> i don't think you worry right now. >> it can't get any better. >> you have to realize those things amount to something like
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a late cycle condition >> right. >> the good news is the industrial part of the economy had a soft patch and downturn. that looks like it might be tilting higher that's what the market is saying melissa you talk about the risk appetite is rising yields were in the wrong place if we weren't going into recession in august and september. now they're on the rise. they're still okay at 2% for the ten year. >> oh, so close for 2% i wonder if the markets are going to have the reaction it's not just the rise in interest rates, it's the speed we saw the biggest increase in rates yesterday since the 2016 election so do markets start to panic when we get to that point where we cross 2%. all of a sudden, oh, no, that's a cap on valuation >> short answer, i don't think so it's going to be a threat to some of the bond sectors and reets and utilities. now we're back to equal weight i don't think the ten-year yield
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is going to exceed 2% which i think has several years. i think inflation stays low and i think the appropriate real interest rate across the curve is zero for the united states. so i think interest rates will be not a threat to markets what i also think is that you've got a situation where finally the politics have been a big concern. i thought we'd roll in from the industrial soft patch, the politics if bloomberg enters the race and gains some traction, i think a lot of investors would feel better with either one of those outcomes. >> do you think that's realistic? >> well, i don't know yet. i think it's a real possibility. >> you do? >> we've been discussing this all morning. >> it's been in the back of -- you know, i'm a new yorker we know about him and the company. but wondering if he would be really in it and put money to it i would feel a lot better about knowing that those were the binary outcome rather than a possible elizabeth warren. also, by the way, you know, people are looking for catchup
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trades i would say go buy health care if this is the situation developing in -- on politics i'd also say if things are -- >> meaning, you think if warren is weakened, then health care is a trade? >> yes good for the market and there's still a quarrel between the u.s. and china. they're in counseling, not in the divorce. there's a quarrel. >> what's on the other side of the ben franklin close right now, santoli what's the biggest -- is it the next slowdown we've got no ammo? >> maybe that's one of the bigger picture ones. i do think -- although, i think there's ammo. >> what is it? >> it stays really -- i hate goldilockss scenarios because it always goes down from there. >> right i think it's pretty well balanced valuations are not particularly attractive for stocks but not out of the range of normal necessary. >> given all the other good stuff. >> especially as the third quarter was a trough for earnings, third, fourth quarter.
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going to inflect up there. you didn't have a down turn in profitability, you had a lull. if that's the case, the market has a bias to click higher if there's not a recession right there and there's not a lot of financial stress credit markets still wide open so all of that stuff would be favorable in the short term tactically people are going to get too bullish. it will overshoot to the up side you see things like big cap tech and industrials running hot. >> anyone on the street that got this right can you name anyone? that's a good sign, too. >> i think there was a certain premise. >> you mean go higher? >> go higher. >> jpmorgan. >> yeah. >> bullish. >> i think our friend tony dwyer has been saying this is kind of a mid '90s play. >> until recently. >> jim paulsen in fact, jim got the down turn last year right. >> there have been really well-known names that -- we forget where the targets were. maybe on the weekend raise the
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targets. it's not 2750 -- >> i don't think people get paid for the target. >> obviously they get paid -- >> nobody would get paid then. >> right, story for -- >> how to present it they can't thin it down. that's why the buy side, you've got to -- those guys get fired, right, eventually? or they run out of clients and write for real money. >> they get made on so he let by machines >> anyway, it's weird. isn't it >> it's a tough market and i think one of the lessons over the past decade if not the past several months, don't make big bets let's stay invested and diversified. that's what we're doing. we always had a little bit of the small budget in our risk taking for tactical calls. that didn't go exactly right during the summer. i still think the weak parts are manufacturing, the commodity complex. oil is not doing so well given this big risk on rally i think you are going to have
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flat profits in the s&p and the down side risks are these value industrial oriented businesses. >> david, thank you. >> thank you. >> mike, thank you >> come up with one ben franklin negative, santoli. >> i did i said valuations and the unknown. >> 19, 17? >> 18 on forward >> how many are on the left-hand side if you counted them up? there would be 10 or 12 things, right? do you ever do the ben franklin -- >> no. >> you don't in your life there are times where you need to -- in decision making -- >> must be where i went wrong. >> what do you mean? you're here now. >> exactly. >> "squawk box." >> exactly. >> star. anyway, still to come on "squawk box," with disney plus just days away, what should investors expect this quarter after the big earnings beat that was not up to snuff with last year, anywhere close to what they earned last year we'll discuss during the break michael bloomberg might be throwing his hat into the presidential ring.
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we'll discuss what such a move could mean for elizabeth warren. we're lucky to watch this. "squawk box" will be right back. at leaf blowers. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated.
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this morning shares of disney trading higher after the earnings topped expectations coming days before the streaming service disney plus will be launched speaking exclusively with cnbc yesterday disney ceo bob iger says the service is ready to go. >> well, it's ready to go. glad to say. we tested it in the netherlands, we'll be talking about that a bit on our call. it was quite successful. the product in the netherlands did not have original content but it was extremely well received, not just in terms of the number of subscribers but the user reaction to it. very, very and a hanavigable, eo use. great access to our brands and our story telling. >> joining us to talk about the streaming environment and more a lot of tech and media news out. ed lee, no better person to talk about it we'll call you a -- not a media
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reporter, media tech. >> tmt. >> tmt land. >> tmt we're looking at it in wall street terms. >> do people talk about telecom? we talk about telecom in terms of at&t. >> they're media, too. >> doing deals with disney plus. >> we were talking to abbey before your sense on this stock is story stock? big issue as to how quickly this -- >> talking to who? >> i was thinking of abby joseph -- jessica. >> jessica. >> she's jessica reith burling >> so confused. >> it's a friday morning and you're calling me out. >> you know what's sick? i knew what you were thinking. >> you said abby -- >> anyway, what is the story on this stock what is the idea
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what are we supposed to be looking at yes, it's supposed to be a growth story in this smaller new segme segment. they're going to be losing money in the beginning years bob iger's explained it to wall street even though their profits are down, the stock goes up. that's how that story works. yes, they've got a growth story there. i think the way to think about whether it's disney plus, hbo max, they call it direct to consumer but that's a bit of a misnomer they're relying on verizon to jump start a bunch of these freebies they've worked out a deal with amazon where you can get disney plus through the fire stick. they're going to work out a deal with all of the other cable guys to help them sell -- >> it's not a true bundle. it's not a bundling program, it's an add-on program. >> add-on. >> very helpful for cbs all access was plugged into that amazon service and so many others. >> right. >> and with comcast, they cut a deal with netflix years ago.
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>> they're at the mercy of the platform still. >> they are. >> versus a comcast which is not going to be reliant -- >> they're not reliant on it they aren't going to lose their broadband connections. if you have issues with your streaming service, you're going to call up netflix, disney, at&t or comcast, charter, or dish >> what we don't know is what these deals are going to cost disney, do we know >> you mean in terms of say the verizon freebie? >> yeah. i don't know if you call them carriage deals or bundle deals meaning if you subscribe to disney plus through amazon, what are they taking? what's the vig >> the vig used to be two or
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three years ago in the case of netflix a buck, a buck a sub every month. >> by the way, netflix from the apple side got out of doing business -- you can no longer use apple pay to get on board. you have to actually go around the service, go online -- >> it will punt you to say the website on the phone -- >> they send you there but you have to go there manually. >> they don't want to pay the 15% apple tax. >> that's another part of this new ecosystem, right this new sort of industrial complex around streaming there's a new one around streaming. there will be pain points. the vig will go up verizon is paying disney wholesale rate. >> talking about vigs, can we switch to wework
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there are some disney employees that -- >> silicon valley has been sold for decades on this enchanted new world on we're going to change the universe through technology we can do it better than anyone else and aside from the big profits and the big pay, the problem is you can participate in this new revolution >> that was the promise of google and facebook. now you're seeing the rank and file lashing out against their bosses, right? happened to google -- >> what happens to wework. are the employees going to walk? >> they're not going to walk it's a paying job. they want to have asteak. >> right if you're softbank having given away billions to adam and lost a small fortune. sure, we want to help you, give you more, too? >> well, you know, there's the concept of collective
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bargaining if wework employees are serious about having a seat at the table. >> are they going to unionize? >> they could unionize i don't think that's the silicon valley way even for places like google and facebook. >> i don't understand the employ's point of view aren't they fortunate that they were bailed out? >> they don't like the fact that adam neumann walked away with billions of dollars for mismanaging a company. >> final question. unrelated. have you been watching "the morning show" on apple >> i caught the first -- >> you saw the article in wall street journal -- >> it's a commercial for -- >> every other scene, where is my phone i think i've lost my phone i'm going to have to find my phone to find my phone. >> i have my phone here. >> you can get a product placement. >> we'll get -- >> i don't know if i left it at home. >> car maybe >> i have something that's so important i have to go back.
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>> it was definitely blatant. >> in every other scene you see the phone. >> right. >> it feels blatant. >> when you're -- >> really? >> focus on the screen. >> you're kidding me >> no, it does i said it to pilar, my wife. we were watching "the morning show" did you see that so many shots of the phone. >> is everybody wearing a watch? >> i don't even notice a watch. >> in our lives the phone plays a huge role. maybe that is realistic. >> in movies, we've been seeing that for years we see it in cereals now of course it's going to be the thing. ultimately the show itself -- >> i haven't seen anybody with an android there's no samsung phones. >> no. >> realism >> little realism would be -- you know. >> it is the media world, right? media people tend to be apple consumers. >> occasionally you have the one guy with the android and then your messages are green and it's very upsetting because you don't know if it's delivered or not.
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>> green or blue. >> it's like red state/blue state. >> i have an xfinity jacket, i do, i got it as a gift i'm going to start wearing it in here xfinity. why wouldn't i do that huh? >> i think it's good >> that -- you know, i thought tim cook doesn't do any of those things that those other tech companies do with product? >> the question is what i want to know is whether it was done on purpose or not. >> oh, you mean having -- it would have to be, right, i would think? because tim cook himself has reviewed all the content that's going through this. >> do you think if you're a director of one of these episodes, we have to have a shot of the phone >> you think -- >> i don't think it's a top down somebody trying to make good. >> thank you. >> any time. >> ed lei. >> i just got an email on my apple -- >> stocks on the move coming up. time now for today's aflac trivia question. on this day in 1895, this german scientist discovered x-rays.
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who is it? the answer when cnbc's "squawk box" continues coach saban, how is aflac's program different from health insurance? well aflac gives you money directly, for things health insurance doesn't cover. aflac! we put together a little highlight reel for you. here's aflac helping you with your deductible... copays...out of pocket costs. you look good paying bills. get to know us at aflac.com ♪ i can shine. ♪ i'mma do what i'm made to do. ♪ built for excellence. you start from the foundation up. the excellence is reaching dreams and chasing them at the same time. but when i started seeing things, i didn't know what was happening... so i kept it in. he started believing things that weren't true. i knew something was wrong... but i didn't say a word.
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now the answer to today's aflac trivia question. on this day in 1895, this german scientist discovered x-rays. who is it? the answer, wilhelm conrad rontgen. welcome back to "squawk box. shares of activision blizzard had a beat latest call of duty game modern warfare generated $6 million in sales. activision sales are up 17%. zillow shares are surging. the online real estate company reported a third quarter revenue better than expected thanks in part to a strategic shift into house flipping in the mortgage
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business zillow said the home flipping business is expected to den ner rate $1.25 billion this year. still to come on "squawk." narrow mixed friday open on wall street following record closes, with the dow and s&p 500 >> quite a bit better. >> moved up. dow jones up six or seven points. then a potential bid from the former new york mayor and billionaire michael bloomberg. we are going to talk about what it would mean for wall street and whether it's even plausible, if he'll enter the race. at the top of the hour, disney's results beating estimates days away from the launch of disney plus. we will continue to talk about the streaming wars and what comes next "squawk" returns right after this (nervously) ready? ok, ready sweetie?
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time for this morning's market movers. dom chu joins us now with more morning, dom. >> good morning. let's start out our tgif movers
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by mcdonald's which are higher 6,000 shares of pre-market volume the stock is now a buy rating. that was prior to neutral. they established $227 price target they like among other things faith in the new ceo chris kempczinsky. wwe is up 3% pre-market. it's being helped by analysts who say it's going to be a buy stock. it was a neutral they cut the target price from 73 bucks to 79 they cite the recent fall in the price in valuation and less fear of cyclicality in the business those shares on the move as well then we're going to end on shares of foot locker which are up about 3% or so. even more than that, 5,000 shares of pre-market volume. it gives an upgrade to positive.
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sales growth at those existing store locations and better product mix for sale including nike's jordan lines, also adidas and puma products as well. andrew, three green ones to start our friday movers. i'll send things back over to you. >> i want to get myself a pair of easies. >> they do they have rubber ones. when we come up, former new york mayor michael bloomberg could jump into the crowded 2020 field. we will have more on what that means for elizabeth warren and other front-runners and we're wearing shares of disney this morning. that entertainment giant beating the street we'll discuss what investors can expect at the top of the hour. "squawk" returns with that and a lot more in just a moment. is the monolithic view of emerging markets obsolete?
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welcome back to "squawk box. futures improved five minutes ago the nasdaq was up four or five. could go negative again. there was a little bit of a bump indicated up 53. s&p indicated up 2.5 billionaire and former new york city mayor michael
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bloomberg is expected to file paperwork this week in one state with an early deadline although an advisor said the former new york city mayor had not made a final decision to run. robert frank joins us with more on bloomberg's wealth. >> michael bloomberg would be the richest man ever to run for president. while his wealth could reshape the money landscape, it could be his biggest liability in a more populus democratic party he's sending staffers to alabama to qualify for the primary he is seriously considering a run since he believes the current front-runners cannot beat the president bloomberg's net worth is $52 billion. that makes him the eighth richest american he is, by the way, 17 times richer than the president. his fortune comes from his merely 90% stake in bloomberg lp that's the financial data and news empire that he co-founded in 1981.
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he was the mayor of new york city for 12 years switching to the republican party and then at the end back to a democrat he's already given away more than $8 billion to charity mainly focused on gun control, climate change, education and health care. elizabeth warren writing to supporters last night, another example of the wealthy wanting our government and economy only to work for them bernie sanders also welcoming him into the race saying, the billionaire class is scared and they should be i mean, the scarlet letter right now in the democratic party is b for billionaire. >> right. >> almost automatically what he has done in his life, the fact that he is a billionaire i think just makes him unacceptable to so much of this electorate. >> right right. it's just -- >> but i would say -- >> i don't know who's talking to him. he's not the -- >> you know this, he has a private polling operation. >> yes, he does. >> that is one of the best in the country. and so, a, he's not doing this blindly. >> right. >> he must see some path, but it
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also proves that he sees that none of the current front-runners -- >> right. >> -- can beat trump and that i think is perhaps more importantly than whether he can win or not, the more important lesson is that his polling operation, which is so sophisticated and so data centric shows him that none of these current front-runners can beat trump. >> is that enough for him to beat the current front-runners though because that's like what he has to run on. >> that is what he has to do first and i think that's the big open question. right now as joe mentioned earlier, his polling numbers within the party, as many democrats dislike him and will never vote for him as like him and that's the issue. >> thanks, robert. joining us now political pollster frank luntz and john hope bryant. operation hope i want to get to you in a secretary, frank i have no idea what john is going to say i figure we could do a lot with that 52 billion in terms of internships. >> yeah.
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>> schools and things like that. i'm he not -- i'm not sure -- i'd almost rather have him get involved that way. do you think he -- do you think he will enter? do you think he'll actually run and do you think he has a chance >> first of all, i love your cool set. >> you do? >> it's the knights of the roundtable. >> do you like how we mess up guests -- >> and i'm still -- >> why is this higher than that? just asking you to spill something. >> even when i spilled it i did it cool. >> you did >> you going to spill, do it cool. >> got all over andrew. >> didn't get on my suit by the way, i like your set. i like you, too, joe >> i like you, too do you like mike bloomberg as a candidate? >> that's a very interesting -- i'm glad you asked it that way i've met him a couple times. he wasn't warm when i met him and i think he needs to warm up personally i think people don't vote for pocketbooks or brains, they vote for hearts and minds president bill clinton once told me look for a leader who's strong and long and he needs to
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be strong and likeable if i want to pack a room in the inner city, i have 4 million clients. i want to pack a room in new york city, i tell them a billionaire is coming. when oprah winfrey came to atlanta and she came to moo moorehouse and came and gave her back, they introduced her as the first black billionaire and got a standing ovation i think it's the intent we're talking about here so i think the one, i like that he's an adult in the room. i think he's going to force the left to come back to position. i think he's going to force the right to come back and have a rational conversation. i think that he can become likeable if he can warm up because my population needs to feel ya. >> he had 12 years to warm up. >> maybe he will, maybe he won't. you asked me a question, i'm giving you an answer i wrote an article ten years ago if bill gates were black and i said if bill gates were black it would be 100% more important than having a black president. obama is fantastic
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bill gates creates tens of thousands of jobs, thousands of millionaires, a few billionaires all of which if they looked like me give back where? where they came from so we need a -- i go the opposite way we need 100 billionaires who are black, 100 billionaires who are latino, 100 billionaires who are indian and asian women they can give back massively is it positive that he's in the race i think it is a net positive if he's about to get it done. not to the republican party, not to the democratic party, to get it done. americans don't think that they can get it done anymore and that's the problem the ladder is broken so this whole concept that we hate billionaires is actually wrong. people say, oh, i hate rich people no, you don't. you hate rich people until you become rich. what people hate is a gamed system. >> don't you think within the democratic primary voters, when you say people, you're talking about the entire american -- within the democratic primary voters, there is this pitch fork
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mood. >> let's ask frank. >> everything is coming from talking to my clients. >> frank, will he run? i don't think he will run. maybe he does have polling that shows he can do well it just seems like he's so far from where the energy is in the democratic party right now. >> let's break this down mike bloomberg has more money than god and he'll be able to jump in at about super tuesday, which is march 3rd, and all these other candidates will have spent tens of millions of dollars in the first four primary and caucus states and he'll be the only one with money. second, we forget that 2 dozen states are open primaries, which means independents and in some cases republicans can vote and i would expect mike bloomberg to target those places so he's not just getting the democratic vote. third, he's something different. we've heard from these candidates again and again, they're continuing to participate in debates, the next one coming up in ten days. the american electorate,
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particularly the democrats, like to hear something new. and, fourth, on economic issues, elizabeth warren has proven so left wing that she is frightening traditional democrats. with joe biden's vote collapsing in iowa -- >> frank, your polling says that or your gut says that? >> no, the focus groups. the research says that biden is collapsing he is now in fourth place in iowa -- >> but collapsing because of the success of elizabeth warren? >> he is dropping and the votes aren't going to mayor pete they're out there and elizabeth warren is gaining every single week she's -- >> does that suggest to you that it would be very difficult for mayor bloomberg to actually win over that group since she's going to do -- since she seems to be so successful at the moment at persuading people tha billionaires should be vilified and are terrible >> it is impossible for mike bloomberg to win that vote what i'm saying is there is a lane right now of about 1/3 of
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democrats who are desperately looking for an alternative to elizabeth warren and bernie sanders. >> 1/3 >> and mike bloomberg represents that lane. >> 85% like the choices that they had you think they have to say they like the choices they have right now? 85% were satisfied with the candidates that are in the mix right now. that was the poll. >> that's -- but that's a mistake in number because in almost half of the states independents can vote and they're not included in that polling. and in 19 states republicans have vote. they've got no one to vote for on the republican side. >> frank, back to this issue john's here talking about hearts and minds. i want to know whether you think people want to vote for competence if you're just voting for competence, mayor bloomberg should probably be the a tat tho the list given what he could do in his political career and professional career but people aren't talking about that. >> i think this is a mistake he
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he's running as a democrat he should run in the independent. >> then you're in the howard schultz problem. >> howard schultz is not mike bloomberg. mike bloomberg has shown his willingness to invest in a campaign he's shown his willingness to be tough enough to take the criticism which howard schultz was not. he's the same age as joe biden but he acts younger. he talks younger he seems younger if he had run as an independent then he would get the disaffected republicans, the disaffected democrats and the large group right center i agree with what you're saying that it's going to be difficult for him, but i'm not saying it's impossible because if you look at the rules of the individual states, you look at the primary and caucus map, they will have spent everything they have to win those first four states and mike bloomberg will come in with more money than all of them, potentially more money than all of them combined on super tuesday, at least the potential is there. >> all of the excitement is
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about making sure that big money, big corporations, billionaires, that we get them out of the political process because they're controlling everything and the guy to do that for us is a billionaire that makes no sense. >> 70% of democrats, you are correct. guys, you've got to look at the numbers. there is still 1/3 of the democrats who don't buy that 1/3 of the democrats that are scared to death of elizabeth warren and bernie sanders and they're looking for an alternative and they don't think joe biden is that alternative. >> as an independent, that would be disastrous. bloomberg said that was disastrous about howard schultz. it would take away votes. >> give the audience the full story. bloomberg was afraid of re-electing donald trump to a second term. >> that's what i said because of an independent running, that howard schultz would sap away all the votes from jill stein. >> no, that's not correct. it's because the votes would end up in the house of representatives and at the time the republicans controlled the house of representatives and he was afraid that no one would get
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a majority of the electoral college and therefore it goes into the house give mike bloomberg credit he's not an idiot. he's studied this. he's focused on this and he knows the rules of the elections. >> do you think he has a shot of winning if he runs as an independent? >> i think that he -- it's tough. >> but you have to think about it so there's a shot. >> there's a shot at enormous disruption i think it is positive not to step on your talking point. i massively agree with you i'm from the get it done party i think that he checks all the boxes and he cross fertilizes two conversations. the conversation about should we be socialism or capitalism i think he creates a whole new narrative because i think when henry ford came on the scene and created the middle class, we said bravo the wealth actually helped those at the bottom of the pyramid we are not seeing that ladder anymore. that's what people resent. there's no way to get there, i resent you, there must be something wrong with that
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system number two, politically he checks the boxes he creates jobs, giving back to under served communities, built a city, he's a rational person, he's an adult in the room. he has a heart and a head. a compassionate heart and a conservative head. he changes the conversation which i think we need right now. i stopped joe? >> i don't think he runs. >> you don't think he runs >> i don't think he does we'll see. >> thank you for all of this frank, thank you nice to see you. when we return, thl partners co-president scott sperling is going to join the conversation let's get a look at the futures. sde dow up 48 points naaq though, s&p 500 up 2 points back in a minute no commission. delivery drones, or the latest phones. no commission. no matter what you trade, at fidelity you'll pay no commission
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welcome back after the news broke >>. >> i think what it ought to be okay >> that's the way to run this
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democracy is through the billionaires, the corporate executives the packs. it's a democracy it's a democracy working great for the giant multi-national corporations we want to continue our conversation right now about what billionaire michael bloomberg would bring for the rates to the white house we have scott sperling here. and frank luntz. >> a, i hope he runs i think it's a patriotic thing
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to do. the nature of the choices that we have have been on the two extremes i think this country is still a centerist country. you can argue whether it's center right or center left. i think we need to search for solutions to the problems that exist. when you look at the growth of the economy in the last three years, it's been phenomenal. it is a result of a deregulatory environment that has taken a lot of costs out that's resulted in much lower unemployment rates nonetheless, there are people who are still not participating and the answer to that isn't to throw out a system that clearly has worked, the free enterprise system has built the ability to have a strong middle class it is rather to look at the way that we come up with solutions to include everybody. >> hey, frank, i want to go to you on this about sort of the billionaire class. i want to read you this is an op ed that came out in "the new york times." i'm not reading it i think it came out while the
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show has been on it is an editorial from the times. the big picture of bill gates from the interview i did with him, i haven't seen this i'm not sure i agree with it either by the way. the billionaires are getting nervous. bill gates and others warn the higher taxes would lead to lower growth they have their facts backwards. so the argument they're making here is that all of these billionaires, including the likes of mayor bloomberg who are talking about -- talking against the wealth tax are really talking their own book and so i guess the question is, to the extent that mayor bloomberg is going to get into the race -- >> do you feel -- >> you look like -- did you know that's what it said before you decided to bring it up >> yeah. that's the energy on the left that we've been talking about. what you're hearing -- >> i'm seeing this. >> but you don't agree with it >> i'm not sure i agree with this i don't have to agree -- >> i know. >> guys, guys -- >> you can bicker.
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let me in on this. >> go ahead, frank nkts we have a lower unemployment rate among african-americans than at any time since they started measuring this we have a 50-year unemployment low among latino americans it's been a quarter century before we've had this view unemployed among 18 to 29-year-olds we have wages going up this economy is working for people, and i remind you, if you go back to 2016 when donald trump suggested that we could have a four-point growth rate -- excuse me, sorry, a 3-point growth rate, that it could get to that point, everybody said this is impossible that he could bring unemployment below 4%. this is impossible this is the strongest economy in all of our lives that we're having right now are people left out? absolutely but more people aren't participating in the economic recovery. >> i want to know politically how a mayor bloomberg can get into this race with the pitch forks out and how he can
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overcome this argument that the tooi "times" is making that they're out there protecting their own class, not trying to protect the economy, the larger idea >> because the electorate looks at this and doesn't decide whether it's good or bad for mike bloomberg or any of the candidates including elizabeth warren they decide whether these policies and proposals are good or bad for themselves. the public has always challenged this idea of a wealth tax because they want to get there themselves they want to be millionaires themselves they know how jobs are created they know how the economy runs and they are looking -- we just finished a poll. 55% of americans believe that next year will be even better than this year and only 20% thinks it's going to be worse. what mike bloomberg does is he runs in states where independents can vote. he participates in states where republicans can vote he encourages a crossover vote that's how he's successful.
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>> i agree and respectfully disagree it is a strong economy but not for everybody. you go to detroit, 40% of young people under the age of 35, certainly under the age of 25 are out of work. so the guy who made this suit we put in business. so i think we've got both of these messages, but the ladder's broken if bloomberg wants to win he's got to have massive opportunity agenda, massive internships or whoever it is. >> we're going to leave it on that it's a debate we'll continue frank, you'll come back. thank you. appreciate it. check out the futures which have moderated those gains in fact, it's truly xemid. the s&p is down and so is the nasdaq we're coming right back.
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as a doctor to help make a positive impact. so that's why i go beyond the numbers. the new york city mayor. >> the show's spike. >> and a year.
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>> welcome back. here on cnbc >> we're off today the partners >> definitely. >> now you don't like the carried interest.
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>> the desire. i see the pain >> i feel the pain down 11 on the nasdaq. treasuries have been the story the last couple of sessions. 2% to 10 year. 194. ever so close. back above 2 maybe some day we'll go to 3 that might be an issue. >> depends how fast we get there. >> if we get there next week. >> okay. let's tell investors about what some of the big stories are this morning. a lot of people talking about disney reporting top and bottom line beats for the fourth quarter entertainment giant got an assist from a 52% increase from studio revenue coming amid a run
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of strong box office performances separately disney getting more good news about its upcoming streaming service. amazon has reached a deal to carry the disney plus service on the fire tv devices. that's according to people who spoke to the wall street journal. we'll talk more about disney's big week ahead in a couple of minutes. check out shares of the gap. they are down and down big this morning. retailer's ceo art peck is stepping down. he'll be replaced by robert fischer, the son of gap's founder. they're warning of a weaker than expected quarter down almost 9% now maybe the fischer family still owns it, maybe you want to -- we've got a private equity guy here to buy it someone has to fix that company. that's a mess. >> that's what we do. >> sounds like maybe a deal could happen. >> we'll broker it right here. a potential new stumbling block between u.s. and china
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there's strong opposition inside the white house. kayla tausche joins us with the latest >> reporter: melissa, it's something we've been hearing for weeks. there's quite a bit of posturing going on in the home stretch of the deal which a month ago was believed to have been fully negotiated, it needed to be written. now there's some nuance to what happened to the tariffs, recent tariffs that came and might be back in december here's what was said in just the last day you have larry kudlow, the head of the national economic council telling bloomberg news that the first phase one deal would include a roll back of tariffs then peter navarro said there was no final agreement, it is up to the president and saying that there was no decision on whether those tariffs would be rolled back this comes after china's commerce ministry in an overnight briefing thursday said that there had been an agreement to roll back certain tariffs on a scheduled timetable and that
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that was a requirement for the deal this, of course, comes as we await news on where and when this deal will, in fact, be signed it was expected to be signed next weekend at the apex summit which was called off by host country chile because of unrest there. we learned yesterday from reuters that the u.s. and chile are discussing co-hosting a scheduled apex summit in the u.s. in january. two senior administration officials tell me they want the two presidents, president trump and president xi to get together sooner rather than later to sign this deal. they acknowledge next weekend might not be a feasible deadline they believe january might be too much of a delay and that those intervening weeks could present unnecessary risks to the deal joe? >> all right, kayla. thank you, kayla tausche in washington for more let's welcome in senator tom cotton of arkansas he's a member of the banking intelligence and armed services committee. the book "sacred duty" is
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available now. thanks for joining us this morning. where do we stand now in terms of the scuttlebutt of whether tariffs are removed? it seems like maybe we're saying not so fast on some of this stuff instead of using what we're hearing from china when the markets respond to where are we >> hey, joe. thanks for having me i think it's important to remember that tariffs are not the policy here. the policy is get china to stop the unfair trade practices tariffs are simply the president's tool if in either preliminary or some kind of larger deal to come you could get a workable dispute resolution mechanism, some kind of guaranteed enforcement measures to make sure that china would uphold its end of the bargain as they often haven't had in past years, then the tariffs would no longer be necessary. i think the debate right now is to make sure that we have a tool in place to hold china to its word whether that's tariffs that remain in place or whether it's a dispute resolution mechanism. >> where are we in terms of
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progress on the really contentious issues is there any hope that something's done in phase one on those things or is that too much to expect? >> i have my doubts about that, joe, that we'd have a sweeping agreement in a phase one deal that touched on some of these contentious issues, especially some of the issues that straddled not just economic matters but security measures like china support for huawei and zte and oertel will he come countries that are the arm of the chinese communist party that are trying to build the next generation of wireless networks around the world i think the agreement if it happens will somewhat be cap ended. it will be on some of the lower hurdles buying more agricultural products, stopping some of the obvious theft of intellectual property of american businesses like counterfeiting or demands for joint ventures some of those things that are really central to the chinese communist party's business model. i know they wanted to kick the can down the road on it in hopes
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that they'll get tariff relief and maybe even kick them past the election next year and hope that they can get a democratic president that will be softer on china. >> that's the calculus that we're trying to figure out in the real world, senator, i'm wondering how you look at it you see the highs, the jobs number was pretty good we see data out of china that's pretty good, not horrible either who do you feel has the upper hand right now and it's november, right i mean, once we pass over into next year and that election is front and center, it seems like the president, president trump, is, you know, unlikely to want to take this all the way -- or is he? what's the calculus on wanting this to go all the way to november does it help him or hurt him >> joe, my calculus, i believe the president's calculus is what's best for american workers and american families. whether that means a deal that can be consummated in the next
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month, next three months, year or two from now, what's best for american workers to stop china's unfair trade practices that they have used against the united states for more than 30 years. in terms of who's got the most leverage, i have no doubt though that it's the united states. yes, we have an election coming up as you say and as y'all were talking earlier, we have a strong economy unemployment numbers were as low as they've been since neil armstrong stepped foot on the moon they are as low as they've been. our economy is still strong. it's still growing still leading the world. china's economy is riddled with challenges, problems and even though it's not a democracy, xi jinping certainly has his own internal poll particular that he has to deal with at the popular level in places like hong kong and his own elites in beijing. >> i'm not sure who will win the election maybe get a democrat some democrats talk tougher than even the president
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seem more intransigent than the president. >> i'm very confident that xi jinping and the chinese communist party would like to roll their dice on a future democrat >> you think so? >> the first to take the chinese threat seriously democrats talking a tough game, yeah, they have. look at bill clinton he said he was going to crack down on china and he immediately rolled over. barack obama did the same thing. they have a history of talking tough until they get into the white house and they immediately roll over. >> i mean, i want to talk on china. that's what we're supposed to talk about here, senator i wanted to ask you as we watch on a daily basis more and more of the testimony about ukraine if there wasn't -- if it becomes clear that there was an implied quid pro quo, implied or otherwise, even if that was on the table, would that cause you to at that point feel that's enough for an impeachment to
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vote yes on a conviction >> joe, it's hard to assess that testimony and evidence because of the way it's leaked out in a selective fashion. >> let's assume -- let's assume he said -- that we said it this way. to get this aid i want you to start rooting out corruption, whether it's 2016 election corruption, whether it's overall, you know, where's all this money going i want you to look at the bidens all those things were together and there was a quid pro quo, is that -- does that rise to the level of a high crime and misdemeanor? >> first, joe, let me say that it's hard to take a step back from that process because it's hard to assess what that evidence is when it's leaked in a selective fashion. as you put it, the president has genuine concerns about corruption in ukraine, which unfortunately has one of the worst corruption problems in the world. just last month the international monetary fund declined to extend credit facility to ukraine because they think even this new president is not yet taking the steps necessary to crack down on
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corruption it's br repoeen reported that ty interfered in the 2016 election. there's an obvious glaring conflict of interest between joe biden being the obama administration's point person on ukraine at the time that his son was getting 50 to $80,000 a month from ukrainian oligarch who is being investigated for corruption those are reasonable and leg legitimate questions for our administration to explore. they're reasonable questions for the american people to have just like they were for the international monetary fund to have. >> i'm trying to sift through all of the noise that we hear every day when it's breathlessly reported that the new info comes out f. it all was out and everything came out and it was quid pro quo, i'm wondering if you go through the process of -- >> joe -- >> what we're going to see you know you're going to get zero votes in the senate why go through it? i don't know >> joe, let me be clear about this this information that comes out every day, it's not a leak, it's
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a plant. it's shifty adam schiff leaking and planting in selective fashion to try to put the president in the worst possible light. the democrats said they can both impeach the president and continue to work on the people's agenda unfortunately that doesn't seem to be the case it's unfortunate they won't let us pass the house bill and there are tangible things that the people need and not working on. >> senator, thank you. we'll get back to china and trade and markets and everything else we appreciate your comments there as well. thank you. >> thanks, joe coming up when we return, a new era for disney is about to begin. ceo bob iger saying the company's over the top service is all set to launch the question, of course, is whether it is the netflix killer or just another big player in the streaming wars, right? doubt it's a big player but we'll talk about the competition and bring you the highlights in
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thewhole set is tilted it's heavy. >> heavy meaning of import not heavy physically >> no. no i was talking about influence. >> there. >> influence anyway, welcome back to "squawk box. the futures right now, kind of green. they were all green a little while ago. we've got 44 points on the dow in terms of it would open higher s&p is kind of been around the flat line all morning. nasdaq has now turned negative again and is down about 6.5 points. disney shares surging after the company reported stronger than expected results across the board. all ahead of the launch of disney plus. julia boorstin spoke with ceo bob iger and joins us with more. julia? >> reporter: good morning to you, andrew. the big news, it was all about
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disney's digital future. bob iger announcing a plan to bolster hulu with fx they will have new original fx series iger announcing new distribution for disney plus. deals with amazon, samsung and lg as well as news that espn plus now has 3.5 million subscribers, has added over 1 million subscribers in the course of the quarter. iger saying they will be investing more in sports content. iger told me he's not concerned that all of these big bets on streaming will hurt disney's core tv business we don't believe that what we're doing is really damaging our bread and butter, to use your words what we really are doing is to do a couple of things. we're giving consumers the opportunity to watch sports in new, sometimes more modern ways, more convenient ways we're also establishing a path for us to continue basically
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success, profitability should the initial or the traditional business model be disrupted to such an extreme that it's a necessary transition that we have to make >> reporter: analysts weighing in this morning with a number of positive notes guggenheim saying positive notes should calm concerns and help pave way for disney. barclays is positive saying the quarter should help stem some near term concerns needham with a hold rating saying that espn continues to be under pressure melissa, back over to you. >> julia, thank you. julia boorstin in los angeles. disney's results and the big streaming launch joining us is tom rogers, executive director of winview and former president of nbc cable. he's a cnbc contributor and michael nathan son great to have you both i'm going to start off with you. given the information that we got from the call yesterday in terms of launches, international launches, content slate that
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will happen on disney plus, how do you view that original goal of 60 to 90 million subs by fiscal 1994. >> it seems like it's on track the verizon partnership, 35 million subs, half could come on they're doing everything right to get to that target. so i feel like, you know, the story is really, really there. now we're waiting to see the numbers coming through the next year or two as they build to that goal. >> tom, what do you think of what you heard last night and how do you see the value of this piece of the business given that it's clear that disney is going to be entering or has entered an arm's race when it comes to spending on content? >> the scrutiny the streaming businesses are getting is unbriu unbelievable i'm glad when we launched cable channels everybody wasn't screaming cable wars they're really under a microscope here. i think they did something very
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smart by beginning to talk about how hulu was going to be positioned because disney has a lot of advantages here they've got great brands, great management with bob and kevin mayer. they have a real advantage with a bundle and the question is how good is that bundle? i think they've gone a long way in showing disney plus is going to be a real juggernaut. i agree with michael that they're on track in terms of their subgrowth there. i think the issue is going to be do they fill out the bundle with strength with hulu very surprising for the quarter that hulu only added about a half a million subs, which was about what netflix added and everybody was saying, oh, my god, that's a real deceleration. hulu has half the subs of netflix. people would have thought it would have grown more. with all of the cord cutting and that's the way to get your network television shows, people would have thought hulu would have grown well. beginning to associate hulu with the fx brand, adult, edgier,
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begin to show that the fox acquisition was going to be put behind that in a meaningful way and i think if they can show that bundle has some real strength and they can, therefore, afford the kind of bidding on original programming that netflix is doing, meaning they'll have more subs to amortize that across, i think they'll be very well-positioned. >> do you agree, michael >> yeah, i agree with everything tom said, everything >> can i ask about one thing, which is -- i agree with you disney plus is probably going to be a must-have it's one of the things that people want for the right breadth of content what is the impact on the retransmission revenues. i think bob iger made the point, which i don't necessarily disagree with, that we're going to hold firm that that source of revenue is going to continue to be very strong in terms of disney. >> the bundle is going to shrink to live sports, live news. i think what disney is doing is not going to change the direction of cord cutting.
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it's going to take advantage of the size of the pie. people will be outside the bundle taking advantage of abc and espn they need to strengthen abc and espn they can't help that people is going to cut the cord. i don't know if tom agrees their wealth is positioned on the live side same way cnbc is relevant live. >> i think you're putting your finger on the big issue here, which is the bundle is going to continue to unravel. >> but how -- and the acceleration of that unraveling is the fundamental question. >> that is it is can the growth of screening outpace the decline of the cord business? what they've shown today is, hey, in the old media world given how studios are performing, given how the parts are performing, they have two of three engines still going really strong the media networks, their decline is being masked for two reasons. one, even though there's a lot of cord cutting, they have long-term affiliate fee,
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retransmission fee contract and that money -- there's escalating pricing there that is giving them growth in revenues even though the cord is continuing to be cut and subs are declining. also on the ad side, they are losing audience. i mean, when you look at the last eight years across the media industry, probably 50% of the primetime cord demo audience has gone away and yet advertising revenues are not falling like that because pricing is going up. so the decline of all of this is being masked. >> can i ask you something what blows me away is the nfl is up 8%, right so all the cord cutting, all the changed behavior, the nfl is a big percent. having a great year. if you have rights to live sports, which i know are expensive, you have a weapon you have a weapon to get more advertising dollars and get more affiliate fees. >> you know why nfl is up? >> why >> because gambling is legal in
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new jersey. >> right, guess what. >> i'm not kidding i lost last night, too >> but i think as time goes on the networks that own key live rights have pricing power. the world is going to bifurcate. >> we haven't really talked about when the amazons of the world and some tech companies start buying -- for a long time we thought they'll buy the sports rights. that hasn't happened yet when that happens the whole game changes. >> right that's probably a decade away. the leagues and subs are not dumb they don't want to give up all the eyeballs. >> disney deserves its due that espn plus did what it did. that was a nice surprise i don't understand i have some self-interest here because obviously i run a business that's in the cash sports gaming business why espn beyond programming isn't embracing that revenue stream, they are so well-suited to be able to take advantage of that >> it's not even some vice that i'm talking about, i'm talking about being more into -- i watch
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every minute of every game now. >> even if you think gambling -- >> $20. >> if you think there's something wrong with gambling, you can think of it as a game of skill for cash espn plus you would think would be built for that. >> answer to a lot of -- >> so you're in? you've got some investments in it >> got a little bit. got a little bit >> tom and michael, thank you. >> what about you, scott you've got to get in do you have any draft kings -- >> into the gambling part? >> yeah. >> going to be legal >> it may be >> huh >> okay. >> that one in cuba back in -- >> it's you, joe. >> coming up, a michael bloomberg presidential run what would it mean for wall street and the front-runners in the democratic party we're already seeing elizabeth warren's already weighing in we'll bring you what she said and talk about a potential shakp teuinhe 2020 race straight ahead you're watching "squawk box" on
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welcome back to "squawk box. taking a check on futures right now. we've lost any gains that we once had on the nasdaq at least. we're looking at a lower open of about 11 points. s&p 500 looking to open down by 1 and the dow looking to add 30 at the open. coming up, a lot more with our guest host this morning. scott sperling going to talk 2019 ipos versus
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the broader market and we'll talk about michael bloomberg and his presidential run and whether there will be a presidential run. as we head to a break, a note. make sure you can subscribe to our podcast, squawk pod. you can get interviews, behind the scenes access. look for us on apple podcast or your favorite podcast app. stay tuned, you're watching "squawk box. ♪ ♪ ♪ ♪ ♪ ♪
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welcome back to "squawk box" right here on cnbc we are live from the nasdaq market site in times square. a couple stories that investor are going to be talking about today. a fresh read on consumer confidence it will happen in 90 minutes the consumer sentiment index expected to come in at 95.3. that would be down slightly from the final october. raphael bostick saying he would have dissented against the recent fed rate cut if he had a vote, that is. bostic saying that the economy is solid and doesn't need further easing bostic is not though, as we
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said, a voting member of the fmoc though he gets' vote in 2021 general electric's leasing subsidiary has bought 25 new airbus jets but what's interesting here is what's inside those jets. according to a reuters report, the jets contain engines made by rolls royce. that's a competitor to general electric's own engine making operation. the leasing unit is seen by analysts as a candidate for potential sale as ge continues to overhaul its balance sheet. kind of an ironic -- is it irony? i don't know what it is. hypocrisy. >> yeah, a lot of times irony and hypocrisy. >> an issue. >> feeling of irony looking at it nbc news is reporting a former new york -- speaking of it, former new york mayor michael bloomberg is preparing to enter the democratic primary.
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bloomberg hasn't officially jumped in. he's keeping his options open. one of the democratic front-runners, massachusetts senator elizabeth warren, the de facto front-runner right now was asked about a potential bloomberg candidacy by nbc's harry smith last night >> i don't think that democracy should be about people coming in and buying elections i think what it ought to be about is -- >> you pointed at michael bloomberg? >> it's pointed at everybody who thinks the way to run this democracy is through the billionaires, the corporate executives, the pacs it's about how we think democracy works. >> joining us now to talk about what a bloomberg run could mean for wall street and beyond, austin golsby. a former council of economic
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advisors professor and ramina boccia. everybody is being moved into different areas. austin, i know you well and i think i can -- you know, i can figure out what you're going to say half the time. i really don't know what to expect right now there were 17 candidates that have been working their collective rear ends off trying to get to the find -- >> technical term is tuccas. >> yeah. debating and pounding the pavement and raising money and now everything's being disrupted by a guy who says, oh, in my opinion, none of you are good enough does the democratic party want someone to come along and say that >> possibly not. you know, i don't know how to feel, joe, if you and i are going to be on the same page. >> that's why i phrased the question like that strange bed fellows. >> we'll have to see
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i applaud that if mayor bloomberg is going to enter the race, he's going to enter as a democrat, it looks like. he's going to try to contest for the nomination as a regular democratic candidate we saw flirtations from howard schultz to try to do a third party run. i think if anybody with that kind of bank roll enters as a third party, it's going to get donald trump elected because it's going to split the anti-trump vote. i don't know i think elizabeth warren feels to me like the biggest beneficiary if a guy like mike bloomberg runs because he's going to hive off support from candidates like joe biden and he's probably not going to take very much support from somebody like elizabeth warren. >> i just didn't need to read in the op ed pages of "the new york times" to know how the woke democrat, that segment of the democratic party, didn't have to
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read that to know how they feel, ramina i know they're not going to like a billionaire trying to come in and say this is how it is or this is how it should be because that's the entire energy on that part of the party because they don't want money in politics anymore. now the answer to the democrats searching for a candidate is a big money billionaire? >> i think what we're all thinking is that the democratic candidates have moved too far left and maybe that is something that bloomberg is trying to address. we've been hearing a lot about wealth taxes and this new sur tax but these are all just issues on the margin we're not talking about the big issues affecting this country. most americans who care about inequality ultimately care about whether people can get ahead they want to know is the american dream alive and what are candidates doing to keep it that way so everyone has a fair shot at the american dream they care less about trying to pull people at the top down. that's where a lot of democratic
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candidates are barking up the wrong tree with their wealth taxes and the attack on the rich >> okay. right now in all the polls biden's beating trump. elizabeth warren is beating trump. what does bloomberg see that obviously he doesn't think any of these candidates can beat trump. are all the polls wrong, romina? >> i think the polls are wrong about elizabeth warren being rather radical where the government controls vastly more aspects of our economy and regulating the financial markets and other areas of our economy in a way that would reduce growth and would leave americans worse off. many of her proposals of bidens hasn't been that popular. >> austan, i don't think of you as in the aoc camp. >> but i want to know -- >> still you don't want bloomberg to run. >> i want to know how austan's
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going to persuade or whether the democratic party, depending where the base is, is persuadable that a middle ground is a good idea that's the fundamental question. how that would be accomplished if it's going to be. >> yeah, look. you've got a couple of things going on there first, strategically for mayor bloomberg i guess i don't understand if you're thinking of entering the race why announce it with a bank shot of you're putting your name on a ballot. >> it's not an announcement. it's not a trial balloon either. i have to sign the things and they're sending down these mystery people and someone gets a phone call. >> it's a cry for help. >> i don't think it's that. >> i can't do it, she's too far right. >> i apologize what were you saying you think it's a -- >> on the democratic party, let's think about that topic i think with mayor pete and with vice president biden you've got a very sizeable chunk of the
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democratic party that's espousing what you call a middle ground i think if you look at their programs, mayor pete is the person that i've been for and he's outlining an economic plan today that i don't -- i think most people if they read through the plan they're going to say, yeah, i agree with almost everything that he says there. so i don't know that there's a ton of space that mayor bloomberg fills that's not already partly filled. it's different if you have $50 billion to get the message out but just the pure money has become a lot less important these days. >> isn't this -- >> we should -- >> we do agree on that, austan the problem is i guess they think joe biden might not be, you know, handling this as well as they could. i think they think mayor pete is not ready. those are the two guys that i think the party would settle on one or the other before they -- >> every politician -- >> the reality is mike bloomberg
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grew up in a poorer part of boston. >> that's not true. >> he's doing okay now. >> the reality is as romina mentioned, this has been about a system that has allowed the upward mobility. it is not a system that's fundamentally broken. >> why the vote for competence what about the vote for competence in america? >> here's an individual who really became a billionaire. >> right >> this is not -- >> did grow a business really addedlots of jobs. >> and ran a city. >> this shouldn't be about whether one of the other candidates -- >> what about the argument around competence? if we were actually being honest brokers, straight up competence of the people who are even on the ticket, i mean, and you added mayor bloomberg to that, i think it's a very -- like it's not even -- there's not even a question. >> it's an interesting point you're emphasizing >> it's completely useless in
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this conversation, competence. >> i hope you don't like sugary drinks either because the nanny state will take those away from you. thank god we got rid of those. >> they took away cigarettes. >> straws. >> do you know how many lives it saved. honestly around the whole world i mean, it's crazy >> i agree with you in principle. >> take away your health insurance, he's not going to take away your access to the doctors that you want to see and the hospitals you want to go to and that's the other -- well, that's the other alternative when you look at the plans of warren and others. >> you're all highlighting just elizabeth warren if he enters the race, elizabeth warren is clearly the biggest beneficiary. there's a weird -- >> my man, austan, let's do lunch. >> how do we agree, joe? we've got to go on tour. >> is this bipartisanship at work >> yes. >> we never did that, austan
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taco bell, we can go to rosa mexican. >> wow, what an upgrade. >> dinner or lunch let me know when you're back here. >> nice coombaya moment. is going public worth it we'll ask our guest host scott sperling weigh in on going public versus staying private. stay tuned, you're watching "squawk box" on cnbc what i love most about being a scientist at 3m is that
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i'm part of a community of problem solvers. we make ideas grow. from an everyday solution... to one that can take on a bigger challenge. we are solving problems that improve lives. elon musk and david einhorn are at it again. they're taking a shot at the green light founder. musk writing it is understandable that you wish to save face, you have several years of down performance and a sharp drop in assets under management, from 15 billion to 5 billion. you have our sympathies.
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einhorn accused musk of fraud for arranging the $2.6 billion for the access of solar city musk sent some short shorts to einhorn, again, just to rub it in. >> oh, gross. >> in case that wasn't enough. >> short shorts. >> and the dow and nasdaq and s&p 500 are in record territory. key names in the ipo market have gone, as you know, decidedly in a very different direction leslie picker has the story with the ipo divergence. >> that's right. it would imply that investors are on risk at mode. some aren't benefitting from the recent rally yes, i'm talking about the initial public offerings they have been on average the best since 2000 but they haven't sustained the gains. in fact, some of the biggest ones are now in the red. uber and lyft down 39, 40% smile direct club trading 50% below the ipo price. even names like pinterest and
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chewy which soared and are up a mere 5%. on average ipos are up about 6.8% this year that's about 1/3 of the gains of the s&p. so there are a few reasons for this number one, most of the capital raised this year took place in the first half so we're in the middle of the period which they're unleashing more supply onto the market pressuring the recent ipos number two, wework scrapped ipo took some of the air out of it they became more cognizant of losses, valuation and that caused a ripple effect across countries with similar financial profiles guys >> leslie is going to stick around want to bring in our guest host. scott sperling, what do you think has happened here. it's just a transformation because of the public markets which are now going to impact the private markets or not >> so, number one, i think there's a focus on the fundamentals of businesses, not on necessarily a vision that
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cannot manifest itself in the reality. >> what do you really pnaeg tpe that to? clearly something else must have happened >> valuations have gotten so out of hand in the later stage private market we saw this prior to the collapse in 2000 we've seen it in a number of other occasions over the course of the last 40 years where the late stage private venture market can get well ahead of where the fundamentals should value the company and then you see a correction i think that's what you're seeing it's not that uber isn't necessarily a great company providing a great service, the question is what's the right valuation for the cash flows that that company can generate with we, i think there was a question of whether the cash flows would ever be there to justify anything close to perhaps even an $8 billion
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valuation. they do have a pretty good comp out there and it trades at less than half or about half of that value and it's bigger. so i think that there's a reality that's been brought to bear and less credibility is being given just to who embraced this company in the private markets and the vision >> i do not think they are faked, smoking your own supply the idea of up rounds that are your own rounds? >> that's more characteristic in the venture world as world as opposed to the buyout world, we don't do multiple rounds in the venture world, i think there is that issue, i think that issue has been exacerbated by the amount of capital under the control of relatively few people who can continue to put money in and -- >> i want to ask about what i want to call a different f word. do you think there is fraud involved in any of this? and not in the traditional sense there is something wrong with
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the accounting, but the reason i ask this is because you do have firms that are writing up -- writing up these -- or historically marking up valuations at the same time they're going out to raise new funds. and i won't even name the firms, i think people know what i'm talking about. i want to know whether you think it is just that they are the most optimistic people in the world, or because there is more to it. >> great question. i think that there is a mix of those things that work there and i also think that, you know, you have a lot of people who have been -- who have come in recently to the industry, who aren't of the industry they haven't lived through the investing part they have been more on the banking side of the world, where you get paid for transactions. you don't get paid for the results of your investments. and it has been a big up market. people just assume it is going to continue. >> what is common between the venture world and the private equity world is the inflow of
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dollars from various investors because of zero percent interest rates around the world, so in that sense, does that cause valuations to be simply pushed higher because there is so much money out there to be put to work >> so it is, again, a really good question. i look at it on the buyout side, the amount of money raised has been dwarved by the value of the targets, the potential companies that you can buy and, you know, we had this question for the 40 years i've been doing this. you know there is always too much money chasing too few deals, yet the long-term results in the buyout world have been about 600 basis points higher than if you invest in the s&p 500. and when you compound that over long periods of time, that's a huge gap when you look at the venture world, it has been much more great years, really spectacular and lots of down ones. one of the reasons for that is there is only so many companies that are going to be winners in any given area there is only going to be uber and maybe lyft
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you're not going to have the 30 other companies that all the venture firms with all this money invested in, in the same space, survive and so when more money pours in, what happens is you have a lot of -- the number of companies in any given space increases dramatically, and we know from history that there is almost always only one, maybe two winners at most. that's why the returns tend to drop significantly when that money comes in on the venture side >> scott, thank you. >> you're welcome. >> appreciate it >> thank you, leslie. >> let's get down to jim i'm going to give jim a choice you want to talk about disney or mike bloomberg or both? it is up to you. >> i think i'll go for disney. >> all right >> i think it was a -- the transformational call. what was great about the call, frankly, was that he was talking about how great american companies can really adjust to a new world, basically just saying, look, the old wasn't
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going to work. that takes a lot of guts to blow up a model did talk about that. that doesn't work for this era very courageous call i think a lot of people don't realize -- jessica did, i think -- exactly how difficult this transition is going to be and from what i can see, he's really carrying it off very, very well. >> amazing the stock always seems to take the half full view of the things that disney -- and i, you know, they don't want to put me in charge i don't understand whether a complete move to streaming is -- whether that's just a slam dunk, that that's the right strategy for a company. you know what i mean >> i'm not going to doubt him. let me conflate the bloomberg and the disney let me ask you something, joe. wouldn't you think bob iger would make a good president? >> i actually was thinking about that that that would be maybe something that would be -- it would satisfy some of the objections you have to mike
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bloomberg. it would take care of some of the -- >> reed hastings said he would vote for bob iger. that's who he wants around. >> there you go. i think that could have happened could have happened. >> and iger -- iger has a job, bloomberg does not, right? he's available. >> look, jack dorsey, what jack dorsey runs square and twitter i mean, you know, don't you think iger could run disney and the white house? >> that's not going to happen though either. but i don't think -- i honestly don't think bloomberg in the end will end up running. i think this is a -- i work for the mayor. i work for the mayor i think he has a better touch than people realize. everything that i ever saw is all behind the scenes. he never wanted to talk about -- he's done. his touch among the regular people is so -- i know regulars is -- i don't mean to condescend, it is so remarkable that if you ever have done any charity work with him, you're blown away about how well he fits in, no matter with who, no
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matter -- he is just a courageous man when i went to hear him give a speech, he said he was too old to run for president i guess you have candidates who are all -- who are near octogenarian, i think he fits in with the crew. >> okay. all right, jim, we'll know soon enough. >> i'm not at the new york stock exchange, just so you know. >> you're at the air force academy at the -- >> it is a beautiful shot. can you give us a little preview of what's going on here? >> well, how about -- first start by saying these people keep a safe, it is a different world, it is good to have these guys here. i'm glad they're learning how to be -- how to protect our country. >> and special tonight, salute to service, you'll have, jim, from the air force academy, special guest kevin johnson. tune in tonight with jim that's a beautiful shot you have what a great -- the air is always so clear and the sun is lodoys out, it seems like, in
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the amount of student loan debt i have, i'm embarrassed to even say. we just decided we didn't want debt any longer. ♪ i didn't realize how easy investing could be. i'm picking companies that i believe in. ♪ i think sofi money is amazing. ♪ thank you sofi. sofi thank you, we love you. ♪ our guest host, scott sperling if you sold everything and harvested all your private equity funds, would you have told us? >> no. >> are you -- are you doing more selling than buying, would you say? >> we have been doing more selling than buying. >> for what? >> for a while >> more earnest? >> buying is hard. it takes us on average one to
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five years is the range to get a deal done because it is hard to participate. >> if that's expensive, it might mean everything is kind of -- it is a data point. >> it is just -- you just have to be careful what you pick and we clearly tri y to focus on industries with good strong growth. >> we'll continue our discussion make sure you join us next week, "squawk on the street" coming up right now. ♪ . good friday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber at the new york stock exchange cramer is at the united states air force academy in colorado springs, gearing up for a special veterans day show. a lot to come with jim later on today. bulls looking to hold what is already the best month for the dow since june after only five trading days disney earnings, good batch of

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